DEVELOPMENT: City Launches Tender Investigation
Recent Western Cape Business News
The City has launched an external forensic investigation into alleged irregularities with the award of a R20 million tender in December 2008 for specialised equipment for the handling of solid waste.The City and nine other respondents have been served with papers by an unsuccessful tenderer, ANN MITT Trading CC.
The City will not oppose this application to set aside the tender awarded to AAD (Associated Automated Distributors (Pty) Ltd, t/a AAD Truck and Bus). The tender was awarded through the City’s procurement process where tenders are considered in a public meeting of its Bid Adjudication Committee.
The City will submit an explanatory affidavit to the Cape High Court setting out all the relevant facts and will await its ruling. If necessary, it will use the findings to review its procurement policy and processes in order to improve them and prevent the recurrence of any irregularity found. This is standard practice.
City Manager Achmat Ebrahim , in announcing the investigation and legal position said: “The City has a zero tolerance approach to any irregularities. While no guilt can be presumed at this stage, a full investigation will be carried out and the findings considered for appropriate action. The City will further implement any changes to the process indicated by the Court’s finding”.
“As a large organisation with a capital budget of R6,5 billion and an operational budget of over R16 billion, the City procures services and goods worth billions of Rand from thousands of providers of goods and services. Its tender process is transparent, and open to the public. The process by its very nature allows for outcomes to be challenged and tested in court by unsuccessful bidders. Both the numbers of tenders challenged and the money involved are very small in comparison to the total tenders awarded by the City in each financial year” said Ebrahim.
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